UNFAIR COMMERCIAL UNFAIR COMMERCIAL PRACTICES DIRECTIVE PRACTICES - PowerPoint PPT Presentation

UNFAIR COMMERCIAL UNFAIR COMMERCIAL PRACTICES DIRECTIVE PRACTICES DIRECTIVE An Overview Peter Deft CCP Directorate 25 January 2006

I’ll Cover � Purpose & Key Features � Structure � The DTI’s Consultation paper � Next steps

Purpose of Directive 1. To achieve a high common level of consumer protection in the EU 2. To improve the functioning of the internal market

Key Features � General duty on businesses not to trade unfairly � Fills gaps in existing legislation and sets standards against for new practices � Put in place a much more comprehensive and systematic framework for unfair trading trading � It uses the principle of maximum harmonisation – but certain exemptions � Laws which impose a lower or higher level of of protection will need to be amended or repealed

What is its scope? Directive applies to: � Business-to-consumer commercial practices � Practices that impact on decisions involving a involving a commercial choice (transactional (transactional decision) � Our consultation paper sets out 28 laws that that may potentially fall within the Directive’s Directive’s scope

Exemptions from maximum harmonisation � Directive without prejudice to: - Authorisations regimes and conditions that attached to authorisation regimes - Contract law � But the exemption for authorisation regimes does not mean that utility companies are not subject to the UCPD

Structure of Directive Substantive Articles in 3 parts: � General Clause [the general duty] � Misleading actions and omissions; and aggressive commercial practices � Annex (of misleading and aggressive practices) practices)

Structure General Duty Misleading Aggressive Practices Practices Annex Prohibitions

Consultation paper Broadly divided into 3 parts � Interpretation – sets out understanding of the provisions of the Directive and how they are expected to operate in practice � Enforcement – Directive underpinned by civil law law enforcement but consulting on introducing criminal sanctions and private law right of redress redress � Existing legislation – consulting openly on how we we should deal with overlapping legislation. Government’s committed to simplification wherever sensible and appropriate

Next steps 2005 Consult on policy options for implementation (14 Dec – 8 March 2006) 2006) 2006 Start drafting guidance; Publish Government’s response to consultation (Spring) Publish draft regulations and guidance for for consultation (Autumn) 2007 Make regulations (Spring) Laws come into force (December)

Peter.Deft@dti.gsi.gov.uk 020 7215 0341 Any questions?